Bombardier’s (BBD.A) stock fell 12% as workers walked off the job at one of the company’s
main business jet projects.
The union representing 1,800 Bombardier workers said workers would return today (June 14), a
day after staging a walk out over the current contract being negotiated with the company’s
management team.
The unionized workers are involved with Bombardier’s Challenger business jet that accounted
for 33% of the Montreal-based company's plane deliveries last year.
The International Association of Machinists and Aerospace Workers (IAMAW) said 76% of its
workers rejected Bombardier's latest five-year contract offer.
The union is demanding higher wage increases in the last two years of the proposed contract,
claiming that Bombardier's current offer of a 2.5% increase is lower than inflation.
Bombardier said it will put a contingency plan into effect to reduce the impact on its operations
from any further strike actions taken by the union.
Separately, Bombardier’s consolidation of its Class A and B shares took effect yesterday (June
13).
Bombardier stock is down 33% this year at $30.16 per share.
